The French Social Security
The French Social Security model promotes social cohesion, and its quality is renowned worldwide. The financing of the system is based on contributions which are levied on workers' wages: it is a legal obligation for companies, employers, employees and the self-employed to pay contributions, as well as for public bodies. The contributions, which are set by the Government, are paid partially by the employers and by the workers even though, the employers are responsible for the payment of both.
The URSSAF’s (Union de Recouvrement des Cotisations de Sécurité Sociale et d'Allocations Familiales) core business is to collect these contributions and transfer them onto the A.C.O.S.S, (Agence Centrale des Organismes de Sécurité Sociale - Central Agency of Social Security Bodies).
The A.C.O.S.S. is in charge of the treasury of the National Security Social Scheme. It despatches the funds that it receives to each of the following branches:
- C.N.A.F, (Caisse Nationale des Allocations Familliales - National Family Allowances Fund);
- C.N.A.M, (Caisse Nationale de l'Assurance Maladie - National Sickness Insurance Fund);
- C.N.A.V, (Caisse Nationale d'Assurance Vieillesse - National Pension Fund).
Before contributing you must register your activity with a CFE (Centre Formalités Entreprise, c.f.: previous articles) which registers the new activity on behalf of all the official organizations. It is the entry point into a network based on several institutions, U.R.S.S.A.F being one of them. All the partners have your file with all the relevant information about the activity. Once the file is completed, you will receive the registration number which will identify your activity. Then, each month or each quarter, you will receive a form issued by the U.R.S.S.A.F in which to declare the wages paid to the company’s employees.
Considerable attention has been focussed on illegal work. The European committee has been confronted with the difficulty of defining common norms for the European Union. However, the committee chose to define the notion of undeclared work as follows: "By undeclared work we understand: any paid activities that are lawful as regards their nature but not declared to the public authorities". Under the 1972, 1991 and 1997 French laws, clandestine work is defined as any economic activity practised without having declared it, along with any employer who under declares some or all of his workers.
Undeclared work takes away the possibility to create more regular jobs and allows employers to provide low quality jobs to lower skilled workers with no social protection. This has also quite an impact on competition between regular employers paying contributions and employers who escape their responsibilities.
The law has extended the power of Income Tax inspectors, maritime affair officers, civil aviation officers, transport controllers, customs officers, police officers, and URSSAF inspectors to fight against illegal work. There is no professional secret between them and they are entitled to share information. Sanctions include up to a 45,000€ fine and a 3-year jail sentence.
For more information and advice, please visit: www.dordogne.urssaf.fr or call URSSAF Dordogne on 05 53 45 68 00.
Périgord Développement which also hosts the Franco-British Chamber of Commerce and Industry Dordogne Regional Delegation offer a whole range of services to the Dordogne’s British professional community. For more information, please contact us.
